Urgent Fix – Strategic Financial Analysis for Zenova Lighting Ltd. (Investment Appraisal + Executive Summary)

1 HOUR DEADLINE*****

This is an urgent correction to an almost-complete final report for FINA610 Business Finance. I need the following fixes:

1. Executive Summary (1 page, not in word count)
   • Place before Introduction.
   • Concisely summarise company background, key findings, and recommendations.
2. Macroeconomic Data Update
   • • Replace UK inflation → Use NZ inflation rate (Stats NZ).
     • Replace Bank of England rate → Use RBNZ Official Cash Rate.
     • Replace GBP/USD exchange discussion → Use AUD/NZD exchange rate trends.
     • Keep the structure of your existing macro section the same — just swap in the local data and reword to match.
     • Make sure to change any references to “United Kingdom” to “New Zealand” or “Australia” where relevant.
   • Cite sources in APA 7th.
3. Investment Appraisal Fix – Lease Option
   • Treat lease as a financing decision:
     • Apply 28% corporate tax rate to lease payments: After-tax lease payment = 750,000 × (1 – 0.28) = 540,000.
     • Discount these after-tax payments at WACC = 10.5%.
     • Present results in a detailed table (Year, After-Tax Payment, Discount Factor to 4 decimal places, PV, Cumulative PV, Total PV).
4. IRR vs RRR Clarification (Owned Plant)
   • Keep NPV discounted at WACC = 10.5%.
   • Compare IRR to RRR = 11% in text.
     • IRR > 11% → Acceptable
     • IRR < 11% → Reject
5. Table Formatting
   • Present both owned plant and lease option calculations in the “detailed workings” style (like the sample image provided in lecturer’s notes).
6. Narrative Update
   • Adjust text to reflect corrected lease PV calculation, IRR vs RRR comparison, and updated macroeconomic context.

Files provided:

• My current report (to edit directly)
• Lecturer’s example image and macroeconomic guidance